Investigating the impact of economic, political and financial risks on the knowledge-based economy

Document Type : Research Paper

Authors

1 PhD Candidate Departement of economics, Abhar Branch, Islamic Azad University, Abhar, Iran

2 Assistant Professor Departement of Economics, , Abhar Branch, Islamic Azad University, Abhar, Iran

3 Associate Professor Departement of Economics, Faculty of Social Sciences University of Mohaghegh Ardabili, Ardabil, Iran

10.30465/jnet.2025.50506.2169

Abstract

The knowledge-based economy, as one of the new models of economic growth, is directly affected by economic, financial, and political risks. This study examines the impact of these risks on the knowledge-based economy index in 42 selected countries around the world from 2000 to 2021. Using the generalized method of moments (GMM), the results show that all three types of risk (economic, financial, and political) negatively and significantly affect this index. Economic risk leads to increased costs and reduced long-term planning. Financial risk, by limiting access to capital, disrupts the growth of innovation. Political risk, by creating instability and sudden changes in laws, prevents the entry of domestic and foreign investments. The findings of this study emphasize the need for comprehensive policies to reduce risks and strengthen the sustainability of the knowledge-based economy. Suggestions include strengthening research and development, creating sustainable regulatory environments, and supporting innovative financing. These solutions can provide the necessary platform for the development of knowledge-based economies and enhance global competitiveness.

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History

  • Receive Date: 03 December 2024
  • Revise Date: 18 February 2025
  • Accept Date: 23 February 2025

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